When Adolf Hitler began his bombing campaign in Britain he is said to have planned that Blenheim Palace – Sir Winston Churchill's birthplace – would be his UK headquarters.

While the Battle of Britain heroes stopped the Nazi tyrant achieving his dream, it seems the makers of a Hollywood blockbuster have other ideas.

For Churchill's ancestral home was transformed into a Nazi headquarters by film-makers, who draped huge swastika flags from the palace.

This photograph shows two 50ft giant swastika flags hanging down from the top Blenheim Palace in Oxfordshire

Hollywood director Michael Bay, 51, (pictured) responded to questions following the controversial decision to use Nazi flags at Blenheim Palace

A number of military vehicles (pictured) and tanks were photographed on the 2,000-acre estate in Oxfordshire

The 2,000-acre estate was overrun with extras wearing SS uniform during filming of a Second World War scene as part of the hugely successful Transformers series.

Critics have described the decision to hire out the property as highly insensitive and said the wartime leader would have been appalled. People living near the estate at Woodstock in Oxfordshire complained about loud noise as explosions and fake gunshots were heard from the set during filming.

Photographs showed tanks, military vehicles and sandbag barricades surrounding the vast courtyard in front of the palace.

Blenheim Palace is one of a number of locations chosen by the producers of Transformers: The Last Knight, the fifth instalment of the popular series.

Veterans were outraged and added that Sir Winston Churchill (pictured) would be 'turning in his grave'

The 300-year-old palace is being used as Adolf Hitler's headquarters in the £200million film. It is understood that management at the palace were aware of the nature of the script

A statue of Sir William Churchill is on the grounds of Blenheim Palace - which is the birth place of the former Prime Minister

Tony Hayes, from the Veterans Association UK, said that the decision would 'appal' those who fought in the Second World War

The £200million film is being directed by Michael Bay, whose films include Armageddon and Pearl Harbor, and stars Mark Wahlberg.

Bay said yesterday: 'People have not been fortunate enough to read the script and they don't know that Churchill in this movie is a big hero. Churchill would be smiling.'

Blenheim was made available as a film set by the 11th Duke of Marlborough John Spencer-Churchill to help pay for its maintenance. It was used in the latest James Bond instalment Spectre and Harry Potter and the Order of the Phoenix.

Sir Winston Churchill was born at the palace in 1874 and proposed to his wife Clementine there. He is buried at St Martin's Church in Bladon, on the edge of the estate. The house is now occupied by the 12th Duke of Marlborough, Jamie Spencer-Churchill, 60, a former drug addict.